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119-s-2519119th CongressWALLET

Medical Debt Relief Act of 2025

Sponsored By: Senator Merkley, Jeff [D-OR]

Introduced

Summary

Bans the reporting and use of medical debt in credit decisions. This bill would add a clear definition of "medical debt" to the Fair Credit Reporting Act and stop medical bills from being treated as adverse credit information. It also directs the Consumer Financial Protection Bureau to issue a regulation within one year to block creditors from obtaining or using medical-debt information when deciding to extend credit.

Show full summary
  • Families and patients: Medical bills would no longer appear as adverse items on credit reports, including debts placed for collection or charged off. This reduces a common reason for credit score damage.
  • Lenders and creditors: Creditors would be prohibited from obtaining or relying on medical-debt information when making lending decisions, with the CFPB required to update rules within 1 year.
  • Credit reporting agencies and data users: The bill changes the Fair Credit Reporting Act to exclude medical debt from the category of reportable adverse information and narrows special handling rules for medical contact and medical information.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Limits medical debt on credit reports

This bill would add a definition of "medical debt" as bills from medical services, products, or devices. It would bar consumer reports from including any adverse information about medical debt, including debt sent to collections or charged off. It would remove statutory exceptions that treated medical contact or medical information differently in reporting rules. It would also require the Consumer Financial Protection Bureau to issue a rule within one year to stop creditors from getting or using medical-debt information when deciding to extend credit.

Sponsors & CoSponsors

Sponsor

Merkley, Jeff [D-OR]

OR • D

Cosponsors

  • Sen. Warnock, Raphael G. [D-GA]

    GA • D

    Sponsored 7/29/2025

  • Sen. Blumenthal, Richard [D-CT]

    CT • D

    Sponsored 7/29/2025

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 7/29/2025

  • Sen. Welch, Peter [D-VT]

    VT • D

    Sponsored 7/29/2025

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 7/29/2025

Roll Call Votes

No roll call votes available for this bill.

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